Sarnia’s insurance costs could be dropping about $250,000 in 2026.
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City council Nov. 17 considers a $1.9-million quote from Marsh Canada.
A report from assistant city solicitor Randi Kalar notes the bid – $1.81 million without tax – is, in part, due to a softening market.
The city’s 2025 insurance costs were about $2.06 million without tax, it says.
Sarnia’s insurance rates have been around $2 million since 2021.
They were $1.6 million in 2020.
“The market was rather hard around the years of COVID, so that usually drives premium costs up,” Kalar said.
“In the last few years, staff has taken various steps to consolidate fleet vehicles or increase our deductibles and, along with that, the market has started to soften.”
A low number of claims from the city also helps, she said.
“In certain situations where the market may be softening, if a municipality has a lot of claims, you might not see that in a corresponding premium decrease.”
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Sarnia went out to tender earlier this year, at council’s urging, to try to find a better price.
How much that impacted the price drop is hard to say, Kalar said.
Renewal quotes typically come in late summer or early fall, “after you would need to go to tender,” she said.
“So, while we knew the market was softening, council directed us to go to tender. So, there could be a mixture in there.”
New this year, Sarnia’s quote includes insurance for the city’s harbour.
It’s unclear why, but insurance for the harbour has been separate from general insurance for years, Kalar said.
“It is a specialized insurance policy . . . very particularized to a certain operation,” she said.
Harbour insurance was $30,000 in 2025 through Marsh Canada.
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Sarnia’s general insurance was $2.03 million, with AON Reed Stenhouse.
Including the specialized insurance as part of the general insurance package this time may have helped lower premiums, Kalar said.
Sarnia received even lower quotes at first, including $1.78 million from Marsh, Kalar said.
“After review of those submissions, it did seem like there were certain areas that may be more difficult to insure, that the city would need to protect against certain losses or certain risks,” she said.
“So, when the insurance companies were asked about any of those potential losses or risks, they did come back with an added premium, to ensure the city is properly insured.”
Kalar didn’t specify those risks.
“It would be kind of confidential, just due to the operations of the city,” she said.
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